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Canadians embracing an entrepreneurial spirit: It was revealed in the survey that 82% of Canadians feel it’s harder than ever before to get a job for those starting out their career. As Canadians turn to gig work due to cost of living pressures and challenges starting their careers, 75% say Canadians have become more entrepreneurial by taking on side hustles or gig work – such as contract or freelance work and working through online digital marketplace platforms such as Uber, Esty, DoorDash, and TaskRabbit.
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Confusion around tax obligations remains: Over 1 in 4 (26%) gig workers don’t feel they have a clear understanding of the tax implications of having a side hustle or gig economy job.
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Lemay notes that there are many tax benefits, credits, and deductions available for gig workers to help reduce their taxable income. “Gig workers are considered to be self-employed in the eyes of the CRA. There are thousands of expenses you may be able to claim – depending on the exact nature of your gig work, and whether it passes the CRA stress test. This means expenses need to be documented, be reasonable, and that the items are required for your gig work versus for personal use. Filing your taxes on time and accurately is the easiest way to ensure you don’t miss out on what you’re entitled to,” he said.
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H&R Block Canada shares key tax considerations for gig workers.
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- Put money aside for taxes: Unlike traditional employment, tax isn’t taken off automatically for gig earnings, meaning that when it’s time to file, you’ll need to ensure all taxes owed are paid. Putting some money aside in advance will help avoid any surprises.
- Required forms: If you work for a gig platform, you may receive a T4A from the platform. If not, you must track and report earnings and expenses yourself. All gig-related income should be reflected on Form T2125 Statement of Business or Professional Activities, as well as any expenses incurred to earn this business income.
- Know when to register for a GST/HST/QST number: Once your earnings exceed $30,000 cumulatively over the past four consecutive calendar quarters you’re generally required to register for a GST/HST/QST number to begin collecting and remitting taxes to the CRA. For rideshare drivers, this must be done before you start earning.
- Consider contributions to the Canada Pension Plan (CPP) and Employment Insurance (EI): Even if you’re self-employed, you must still contribute 11.9% of your net business income exceeding $3,500 to the CPP. Depending on your earnings, additional contributions may be required, up to a total maximum of $8,068.20. To contribute more than the required amount to CPP, Canadians must fill out Form CPT20 Election to Pay Canada Pension Plan Contributions, although this should be considered carefully, taking into account other investment opportunities such as the RRSP or the TFSA.
- To contribute to EI, Canadians must first register with Canada Employment Insurance Commission (CEIC). They must pay EI premiums for at least 12 months and earn a minimum of $9,254 in net self-employed income to qualify for benefits, such as maternity and sickness benefits. EI won’t cover job losses for those self-employed.
- Key deadlines: The deadline for filing gig or self-employed taxes is June 15th, but if you owe money back to the CRA you’re required to pay by April 30th, 2026 to avoid interest. If you know you’ll owe taxes, it’s best to file your return early. Penalties compound over years, so having incurred a penalty in the past 3 years means penalties will double this year.
- Gig platforms are required to report their users’ income to the CRA: Websites like SkipTheDishes, DoorDash, Airbnb, Etsy and Uber are required to report the income of their users to the CRA. The digital platform will provide users with the information they share with the CRA, so ensure what the platform is reporting to the CRA is equal to what you have declared.
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About the survey: These findings are from a survey conducted by H&R Block from Feb. 19-23, 2026, among a representative sample of 1,545 Canadians who are members of the Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20. In some cases, data is rebased to exclude respondents the question did not apply to.
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About H&R Block Canada: A trusted partner of Canadians for over 60 years, H&R Block Canada is the market leader in assisted tax preparation. Serving almost 1,000 office locations across the country that includes a network of Canadian franchise business owners, H&R Block’s team of Tax Experts use the latest in technological advances combined with real-world expertise to help people file taxes in office, file remotely, or use our award winning tax software, named moneyGenius.ca’s Best Tax Software two years in a row. H&R Block Canada can support in the preparation of personal, small business, corporate, U.S., rental, and estate taxes. H&R Block’s comprehensive education program, Tax Academy, ensures our Tax Experts continually update their skills. Learn more at www.hrblock.ca or 1-800-HRBLOCK.
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For more information, contact: H&R Block c/o Ketchum: [email protected]
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English (US)